During Year $2,$ the company experienced the following events:

Purchased inventory that cost $$5,200$ on account from Ross Company under terms $\frac{1}{10},\frac{n}{30}.$ The merchandise was delivered FOB shipping point. Freight costs of $$190$ were paid in cash.

Returned $$400$ of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.

Paid the amount due on its account payable to Ross Company within the cash discount period.

Sold inventory that had cost $$6,800$ for $$12,100$ on account, under terms $\frac{2}{10},\frac{n}{45}.$

Received merchandise returned from a customer. The merchandise originally cost $$900$ and was sold to the customer for $$1,680$ cash. The customer was paid $$1,680$ cash for the returned merchandise.

Delivered goods FOB destination in Event $4.$ Freight costs of $$140$ were paid in cash.

Collected the amount due on the account receivable within the discount period.

Sold the land for $$8,500.$

Recognized accrued interest income of $$600.$

Took a physical count indicating that $$13,400$ of inventory was on hand at the end of the accounting period. Hint Determine the current balance in the inventory account before calculating the amount of the inventory write down.